Claim of credit of
tax paid on stock as on 31/12/2006 – Notional Credit of tax paid on purchase
from resellers eligible.
Rule 13(b)(ii) of the TNVAT Rules allows credit to the extent of the tax
calculated on the purchase value of goods purchased from second and subsequent
dealer after deducting fifteen per cent and by using the tax fraction formula
at the rate specified in the relevant Schedule under the TNGST Act.
The tax fraction formula is, (t x r) /(r+ 100), where' t ' is taxable sale
inclusive of tax and ' r ' is the rate of tax applicable to the sale.
The dealer who claims input tax credit under this sub rule shall furnish
separate statement.
